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What Does it Mean?  Legislature/Governor “kicked the deficit down the road” to FY14.  Structural Budget Stability Not Yet Attained at State Level  FY12-13 Less Ominous Than Projected  We Can Expect FY14 Appropriation Reductions

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How Does Minnesota State, Mankato Respond?  Must Plan For What Level of Identified Reductions Are Needed to Solve FY14  Must Treat Those Delayed Reductions as Temporary Budget Relief  Restoring All the Identified Reductions into Base Budget is not Prudent ♦Positions Minnesota State to React to FY14 Deficit Without Searching for Reductions Beyond Those Which Have Already Been Identified.

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Other Factors  Office of Chancellor Finance Staff is Urging Campuses to Consider “New Normal” Economic Challenges in Long Term (10 year) Budget Plans  Current National and Global Economic Uncertainties  Long Term Impact of Federal Spending Reductions on Higher Education